As a maintenance manager, your livelihood hinges on your ability to control maintenance costs and minimize production downtime. Whether you work in manufacturing or in the food and beverage industry, you need to protect the health of your equipment and take the necessary measures to ensure that your facility runs efficiently. One of the best ways to accomplish these goals is to develop a strategic spare parts management method to organize your spare parts. Below are eight best practices to help optimize your spare parts inventory. One of the greatest challenges facing inventory control specialists is tracking for excess or unused parts that are not included in a company's existing inventory control system. While it can be tempting to temporarily store these "one off" parts or components in a box in the corner, they should be assigned an official part number and added to your inventory control system.
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- 7 Things to Consider for Successful Spare Parts Management
- The Importance of Spare Parts Inventories
- Making Your Spares Management More Efficient
- Aircraft Parts: Manufacturers
- Using KPIs to Measure & Manage Your Spare Parts Inventory
- What is MRO and What Does it Stand For? A Brief Guide to Maintenance, Repair, and Operations
- 7 Things to Consider for Successful Spare Parts Management
7 Things to Consider for Successful Spare Parts Management
Many companies, large and small, have storerooms or warehouses containing inventory ready to ship directly to customers. Production departments typically report the number of units produced per man-hour worked, or the number of units produced per kilowatt hour.
Measuring KPIs such as these allows companies to manage production of those units, thereby controlling cost. Maintenance departments, however, measure different parameters such as the number of Work Orders in backlog. They may also compare the amount of Preventive Maintenance Work Orders performed versus the number of Emergency Work Orders generated and completed over a given period of time. Inventory used to support MRO programs is managed by maintenance departments.
This in most cases is not the responsibility of inventory departments. Failure to properly manage inventory can lead to a significant waste of company dollars. Funds otherwise allocated to important business endeavors may end up being spent on unnecessary spare parts. Overstocking leads to parts simply sitting on shelves for extended periods of time. Ordering the wrong or insufficient parts can result in excessive equipment downtime and a lag in production. Many inventory departments aim to keep just enough MRO items to support maintenance without overstocking parts.
Departments may attempt Just in Time JIT ordering, a strategy used to decrease waste by receiving items only as they are needed. This method can lead to drastic effects on maintenance and overall production since departments rely on identifying the correct Reorder Point to sustain production lines.
Finding the magical point to reorder the correct quantity of low stock items at the correct time so as not to be STOCK OUT during a critical moment is possible, however it can be challenging. There are many KPIs to consider for inventory management, with more and more developing as time goes on. Selecting five meaningful KPIs for your organization is an ideal starting point.
The process of establishing KPIs should be done collectively, with support from all departments before instituting. Most importantly, KPIs should be relevant, measurable and reportable. Most computerized maintenance management software CMMS programs on the market today allow users to interface with Work Orders and Purchasing.
This simplifies the process by performing calculations for Economic Order Quantity EOQ , or offering a realistic reorder point level based on various factors such as lead time and turnover quantities of an individual part. A successful CMMS program can provide much, if not all, of the data required to calculate meaningful KPIs and subsequent graphing of those performance indicators over a period of time.
Robert Brieck Many companies, large and small, have storerooms or warehouses containing inventory ready to ship directly to customers. Roll of the Dice Many inventory departments aim to keep just enough MRO items to support maintenance without overstocking parts. Acceptable range is greater than 95 percent. Calculate weekly. Acceptable range is less than 2 percent. Calculate monthly. Acceptable range is less than 1 percent. Acceptable range is less than 30 days on hand. Acceptable range is less than 5 percent of total stock units.
Acceptable range is 98 percent. Image credit: DPSI. A part form displaying example reordering options. Eric Dynowski. Dee-Ann Durbin. Supplier Helps Combat Hunger, Food Waste How a seven-month capital equipment project is helping produce 42M pouches of food annually for those in need.
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Practical spare part management is the foundation for reliable plant operation and is crucial to a plant managers success. As plant manager, you need to know how to determine which spare parts are needed to make up an effective and comprehensive inventory system. Taking these factors into account can help minimize performance disruption, promote efficiency, and reduce carrying cost. Ultimately, producing successful spare part management. As a parts manager, you will either operate from a predictive or reactive position.
The Importance of Spare Parts Inventories
Access the best thinking, right here. Have a question you don't see an answer to? Enquire now. Deon McHatton , 31 August 5 min read. Having spare parts on hand is a crucial aspect of manufacturing maintenance, as every plant needs to carry a certain amount of spares to be able to recover in the event of a failure. Spares holding represents capital expenditure on products that return no bottom line contribution. Multiple spares also require additional real estate to store.
Making Your Spares Management More Efficient
The manufacturing systems that companies thrive on require more than lubrication and maintenance. They also require spare parts. Most manufacturing and processing companies keep an inventory of spare parts. However, small businesses should also consider creating a spare parts inventory as well. There are several reasons why a company utilizing machinery should have a spare parts inventory. This includes everything from the parts for an office printer to the processing equipment large enough to fill a warehouse space.
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Aircraft Parts: Manufacturers
Quality levels are discussed and agreed upon upfront. As a trusted partner with clear processes, we deliver on our promises. Our extensive and in-depth knowledge of both Stork-original as well as third-party equipment, also allows us to re-engineer and manufacture critical spare parts with the shortest lead time possible and thereby keep your assets running.
At the best of times managing a spare parts supply chain is a challenge, at worst it can feel like an impossible task. Spare parts are generally stocked at all stages of the supply chain and in multiple locations by manufacturers, wholesalers, retailers, and end users. The number of items is large. Typically, there are thousands, even tens of thousands of different Stock Keeping Units to manage, and units vary in value, lifecycle, weight, size, and criticality. Predicting demand when demand can be so sporadic is seemingly impossible. Automating the parts of the process best done by a specially designed system frees up managers to concentrate on customers, colleagues and tackling the unpredictable, the unexpected and the one-off things that really need a good manager to get them right. There are key differences between manufacturing supply chains and aftermarket supply chains. Cohen et al. Manufacturing supply chains are designed to provide good service levels while maximizing stock turnover. Conversely, spare parts are primarily there to act as insurance when a break-down occurs. In many breakdown situations time lost equals expense.
Using KPIs to Measure & Manage Your Spare Parts Inventory
Cold room doors — Cold room door parts — Compressors — Components — Air coolers. With over 20 years of in-house experience in building and modernizing vessels and offshore units around the world, we have the expertise and large global supplier network to provide you with the most cost-efficient and logistically-convenient solutions for your new construction, refurbishments, spare parts and maintenance needs. The strength of our company begins and ends with the relationships with our customers. We work each and every day to build on these relationships. We are passionate about bringing you the best solutions for your needs and strive to earn your continued trust by delivering each project to the highest standards. However, our sourcing capabilities are not limited to our local offices and thanks to our worldwide network of suppliers, we can deliver any product to any location in the world. We are ready to help our customers with their spare parts and equipment needs once we have completed the newbuilding or modernization project, but we are not limited to these types of deliveries and can also service the entire fleet regardless of our participation in a previous project. ALMACO has over 20 years of experience doing business in Europe and Asia with suppliers, subcontractors, partner factories and delivering projects.
What is MRO and What Does it Stand For? A Brief Guide to Maintenance, Repair, and Operations
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7 Things to Consider for Successful Spare Parts Management
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